The Table Given Below Represents the Marginal Valuation of a Beekeeper

question 31

Multiple Choice

The table given below represents the marginal valuation of a beekeeper (collecting honey) and an orchard farmer (producing mangoes) .The beekeeper's opportunity cost reflects the loss in honey collection resulting from the usage of the same orchard again and again.

$\begin{array}{|c|c|c|c|c|c|}\hline \text { Days used } & \begin{array}{c}\text { Total honey } \\\text { value }(\$) \end{array} & \begin{array}{c}\text { Marginal } \\\text { honey value } \\(\$) \end{array} & \begin{array}{c}\text { Beekeeper's } \\\text { opportunity cost } \\(\$) \end{array} & \begin{array}{c}\text { Total value } \\\text { of mangoes } \\\mathbf{( \$ ) }\end{array} & \begin{array}{c}\text { Marginal value } \\\text { of mangoes (\$) }\end{array} \\\hline 1 & 18 & 18 & 4 & 10 & 10 \\\hline 2 & 23 & 6 & 4 & 17 & 7 \\\hline 3 & 27 & 5 & 4 & 23 & 6 \\\hline 4 & 30 & 3 & 4 & 28 & 5 \\\hline 5 & 32 & 2 & 4 & 32 & 4 \\\hline 6 & 33 & 1 & 4 & 30 & 2 \\\hline 7 & 34 & 1 & 4 & 29 & 1 \\\hline\end{array}$

-Refer to Table .What would be the maximum number of days for which the orchard owner would wish to keep the beekeeper in the orchard by paying him a compensation which is sufficient to cover the latter's opportunity cost?

• A)5 days
• B)7 days
• C)More than 7 days
• D)3 days

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Definitions:

Import Substitution

An economic policy aimed at replacing foreign imports with domestic production to promote local industries.

Foreign Competition

Competition that domestic companies face from companies located in other countries, influencing markets, pricing, and innovation.

Trade Restrictions

Measures such as tariffs, quotas, and embargoes that countries impose to control the amount of trade across their borders.

Import-Substitution Policy

An economic strategy aimed at reducing dependence on imported goods by promoting domestic production of similar products.